The median price paid for a new vehicle in the U.S. in June was the highest on record and marked the first time the average transaction price (ATP) surpassed the $48,000 mark, according to new data released by Kelley Blue. Book.
How much the ATP of new vehicles rose
New vehicle ATP rose to $48,043 in June 2022, according to Kelley Blue Book, surpassing the previous high of $47,202 set in December 2021. June prices were up 1.9% ($895) from May and up 12.7% ($5,410 dollars) from June 2021.
Days supply of new vehicle inventory inched up to 30 in June after being in the 30s since mid-January. Customer demand remains strong due to ongoing supply issues. These conditions allowed most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). The average price paid for a new vehicle has been “above the sticker” throughout 2022. In June, new vehicles from Honda, Kia and Mercedes-Benz were trading on average 6.5% to 8.7% above MSRP . On the other end of the spectrum, Buick, Lincoln, and Ram were selling nearly 1% below MSRP.
What is the average price paid for a non-luxury car?
The median price paid for a new non-luxury vehicle last month was $43,942, an increase of $615 from May, the highest price on record for a non-luxury vehicle. Car buyers in the non-luxury segment paid an average of $1,017 above the sticker price. Consumers have paid approximately $1,000 more than MSRP in each month of 2022 vs. just $158 above MSRP in June 2021.
“While prices for the industry are, on average, higher than MSRP, there are some non-luxury segments that are more affordable, such as compact cars and compact SUVs/crossovers,” said Rebecca Rydzewski , manager of Cox economic and industry information research. Automotive. “These segments are selling for more than 30% less than the industry average transaction price.”
What about luxury cars
In June 2022, the average luxury buyer paid $66,476 for a new vehicle, an increase of $1,097 month over month, the highest price ever seen for a luxury vehicle. For comparison, luxury vehicles were selling for nearly $825 under MSRP a year ago. The share of luxury vehicles remains historically high, rising to 18% of total sales in June, up from 17.3% in May.
What is the average price paid for an EV
The median price paid for a new electric vehicle (EV) increased 3.8% in June from May and 13.7% from a year earlier . The average price of a new electric vehicle, more than $66,000 , according to Kelley Blue Book estimates, is well above the industry average and more aligned with luxury prices than conventional prices. Hybrid/alternative energy vehicles sold for just over $39,000 in June, an increase of $3,593 from May and an increase of $8,453 from the prior year. High gas prices are prompting consumers to consider smaller, more fuel-efficient electric vehicles , hybrids and gasoline-powered models.
Price increase by segment
Month-over-month average new vehicle transaction price changes by segment saw mixed prices in terms of increases and decreases. With an ATP of $39,040, hybrid/alternative energy cars saw the biggest increase of $3,593 . Hybrids have had the lowest bid of any segment lately. With an ATP of $66,997, electric vehicles saw an increase of $2,444 in June , while trucks rose $658 to an ATP of $50,126. The different automobile segments showed nominal increases in the average transaction price in June versus May.
Also in extremely tight supply, compact cars are up just $146 or 0.6%, while midsize cars are up 1% or $325 for the month . Luxury cars showed a 6.4% decline in ATP and large cars showed a 0.2% decline. Meanwhile, electric vehicles had the lowest incentives (as a percentage of ATP) at 0.4%, and entry-level luxury cars had the highest at 3.4%. Incentives fell to an all-time low in June, averaging just 2.3% of the average transaction price.